Turned down from the May record high at 2450 as prices consolidate the bullish breakout at the start of Q2
Turned down from the May record high at 2450 as prices consolidate the bullish breakout at the start of Q2. Pullback from the latter to unwind the deep overbought daily and weekly chart found support at 2280 level.
However, weekly studies are still unwinding overbought readings and suggest scope for deeper correction of the strong gains from the 2000 level at the start of the year. Break of the 2280 support will confirm a double top at the 2432 and 2450 highs and see room for deeper pullback to the 2200 level. Lower still, if seen, will see scope to the 2150 high of December then the strong support at 2080/2070, highs of 2020 through to the 1H of 2023. This area expected to protect the downside and give way to buying interest later.
Meanwhile, break above the 2400 level and the 2432/2450 highs will extend the underlying bull trend and see room for further gains to 2644, the equality projection of the 2015/2020 rally and measured from the 2022 year low.